Quarterly Report and Resource

RNS Number : 2199A

Centamin Egypt Limited

30 July 2008

 



Centamin Egypt Limited ('Centamin' or 'the Company') 

(TSX:CEE, ASX:CNT, AIM:CEY)

QUARTERLY REPORT FOR THE QUARTER ENDED JUNE 30, 2008 AND RESOURCE UPGRADE

Highlights

• Sukari mineral resource upgraded to 8.56 million ounces of gold Measured and Indicated, plus 3.2 million ounces of gold Inferred at 0.5 g/t cut off grade
  

• An increase of 5% or 440,000 oz in Measured and Indicated resources above the April resource
   

• Measured and Indicated resources account for 73% of the total resource, up 3% from April 2008
  
• 16,476.3m of diamond drill ('DD') resource definition drilling completed during the quarter
  
• Grade Control and blast hole drilling continuing
  
• Regional Exploration has discovered a previously unknown prospect with several +1g/t surface assays in old workings north of Sukari
  
• Completion of Tailings Storage Facility ('TSF') bulk earthworks
  
• Completion of 25km water pipeline trenching and access road
   
• Appointments to the Board of Directors
  
• Significant intersections received for the quarter include:

Amun Deeps (9900N - 10700N)

• D1333 - 11m @ 7.19g/t Au; 14m @ 32.59g/t Au 

• D1338 - 34m @ 2.22g/t Au 23m @ 7.76g/t Au

• D1339 - 37m @ 3.29g/t Au

• D1345 - 94m @ 3.98g/t Au 

• D1347 - 24m @ 2.74g/t Au; 7m @ 8.42g/t Au

• D1351 - 34.4m @ 6.00g/t Au

• D1366 - 58m @ 2.53g/t Au; 10m @ 45.94g/t Au

Pharaoh Zone (11200N - 12100N)

• D1344 -46m @ 6.39g/t Au

• D1355 - 12m @ 3.91g/t Au; 77m @ 4.90g/t Au 

• D1364 - 81m @ 4.07g/t Au 

Progress Picture: Sukari Construction Camp
 

http://www.rns-pdf.londonstockexchange.com/rns/2199A_10-2008-7-30.pdf

RESOURCE ESTIMATION AND DRILLING PROGRAMME

At the end of the June quarter, Measured and Indicated ('M&I') resources were up 5% to 8.56Moz from 8.12Moz (April 2008).  M&I resources account for 73% of the global resource i.e. all categories, up a further 3% from April 2008.  As with the first calendar quarter, the drilling had been focussed in the Amun Deeps area and the growth in M&I resources has been excellent and allows further work to be undertaken on the underground resource modelling.  Resource growth at Sukari occurred within the Amun Deeps from 9900N to 10700N, testing the Hapi Zone and deeper, sub-parallel mineralized structures, as well as from starting back in the Pharaoh Zone to the north of 11200N.

Table 1 - Total Resource (July 2008)

	Measured		Indicated		Total			Inferred
					Measured + Indicated
Cut-off	Tonnes	Grade	Tonnes	Grade	Tonnes	Grade	Gold	Tonnes	Grade	Gold
g/t Au	(Mt)	(g/t Au	(Mt)	(g/t Au)	(Mt)	(g/t Au)	(Moz)	(Mt)	(g/t Au)	(Moz)
0.5	66.37	1.46	111.04	1.52	177.41	1.50	8.56	59.6	1.7	3.2
0.7	47.94	1.79	81.10	1.87	129.04	1.84	7.64	43.1	2.1	2.9
1	31.23	2.31	53.84	2.39	85.07	2.36	6.45	29.0	2.7	2.5

Note to Table: Figures in table may not add correctly due to rounding

Figure 1 - Sukari resource growth graph from April 1997 to July 2008 

http://www.rns-pdf.londonstockexchange.com/rns/2199A_-2008-7-30.pdf

The resources are estimates of recoverable tonnes and grades using Multiple Indicator Kriging ('MIK') with block support correction. Typically, measured resources lie in areas where drilling is available at a nominal 25 x 25 metre spacing, indicated resources occur in areas drilled at approximately 25 x 50 metre spacing and inferred resources exist in areas of broader spaced drilling. The resource model extends from 9700mN to 12200mN and to an approximate depth of 350mRL (approximately a maximum depth of 950 metres below the crest of the Sukari hill) and is based on all assay data available at June 30, 2008. The resource dataset comprises of 137,026 two metre down hole composites and surface rock chip samples; compared to 128,305 composites (additional 8,721 composites) in April 2008.

DRILLING PROGRAMME

The drilling programme during the quarter continued to concentrate in the Amun Deeps area, testing down dip extensions of the Hapi and deeper, sub-parallel mineralisation zones at depth. This resulted in added and upgraded resource ounces down dip of the current geological data, infilling resource block and geological data gaps at and beneath the pit margins and increased the understanding of the mineralisation trends. Towards the end of the quarter, drilling started again in the Pharaoh zone north of 11200N, targeting the continuation of the high grade up-dip part of the Hapi Zone and parallel structures, as well as higher up, west dipping mineralised structures. Several strong zones were intersected.

Planned drilling will continue with five contractor and three Pharaoh Gold Mines NL ('PGM') DD rigs testing:-

• the Hapi Zone and other gold mineralisation zones in the porphyry north of 11200N in the Pharaoh Zone;

• down dip and along strike extensions of the Hapi and deeper, sub-parallel mineralisation zones at depth in the nearly completed Amun Deeps programme;

• the Hapi Zone in the Main porphyry with infill holes to increase confidence in the estimation of grade and tonnes for underground mining studies; and

• geological extensions of the main porphyry block down dip to the west of Amun Deeps, in the newly defined 'down thrust' porphyry extension.

Amun Deeps (9900 - 10700N)

Drilling continued in the Amun Deeps programme during the quarter, and continued to intersect significant gold mineralisation, with higher grade zones generally at the upper hangingwall contact areas of the Hapi Zone, and at the west dipping, shear zone footwall contact of the Amun Deeps porphyry block (Figure 2).

Hole D1366 on 10325N tested the probable down thrust location of the fault blocked main porphyry unit, beneath the interpreted shallow west dipping (20 - 30o) footwall thrust contact. It intersected a highly mineralised quartz vein/shear with abundant visible gold ('VG') which returned 10m @ 45.94g/t Au from 511m (including 2m @ 227.70g/t), dacites and fragments of porphyry, then a 40m thick high grade looking zone of porphyry, also with a strongly sulphidic, brecciated upper contact and quartz veining in the projected area (39m @ 1.76g/t Au from 591m), about 90m down the west dipping shear zone from the Amun Deeps porphyry block (Figure 2). Drilling will continue to test the area for the continuity of this zone, further porphyry blocks and extensions.

Progress Picture: First five 785C Dump Trucks 

http://www.rns-pdf.londonstockexchange.com/rns/2199A_9-2008-7-30.pdf

Figure 2 - Schematic Cross Section across the Amun Deeps Zone, showing main structural features, some drilling and assay intersections  

http://www.rns-pdf.londonstockexchange.com/rns/2199A_1-2008-7-30.pdf

Hole D1333 on 10175N (Figure 3) intersected a thick sequence of the Amun Deeps porphyry, including two main high grade zones, very similar to D1328 on 10125N reported last quarter; showing continuity along strike. The Hapi zone was intersected around 330 - 340m (46m @ 1.65g/t Au from 326m), with visible gold noted in a strongly sulphidised quartz vein zone at 335m (4m @ 5.36g/t Au from 332m). A very high grade looking footwall zone of massive milky quartz vein sheared up with footwall rocks and sulphidic porphyry with abundant fine specks of VG returned 14m @ 32.59g/t Au, including 2 +100g/t 1m assays (Table 5). Hole D1339 was drilled down dip on the same section, also intersecting strong mineralisation in the Hapi Zone (Figure 3; Table 5).

Figure 3 - Schematic Geological Section 10175N - Holes D1333 and D1339 

http://www.rns-pdf.londonstockexchange.com/rns/2199A_2-2008-7-30.pdf

Hole D1338, 100m north on 10275N also intersected a 125m thick zone of porphyry as predicted by the model, with a high grade intersection in strongly sheared and quartz veined porphyry at the footwall of 23m @ 7.76g/t Au from 495m (including several +5g/t discrete metres and 1m @ 116g/t Au from 513m; Figure 4). A thick, high grade hangingwall ('HW') Hapi Zone intersection of 34m @ 2.20g/t Au from 413m was also returned.

Figure 4 - Schematic Geological Section 10275N - Hole D1338 

http://www.rns-pdf.londonstockexchange.com/rns/2199A_3-2008-7-30.pdf

The Hapi Zone at the hangingwall contact in D1351 on 10250N returned an extremely high grade of 1.6m @ 85.88g/t Au from 338m, inside a thicker, highly mineralised zone of 34.4m @ 6.00g/t Au from 336.6m. Coarse VG was logged, and the brecciated, sulphidic quartz veining in this zone (Figure 5) is typical of many holes in the Hapi Zone in the Amun Deeps porphyry block.

Figure 5 - Strongly mineralised Hapi Zone at HW contact D1351, 10250N and Visible Gold in the brecciated, sulphidic quartz vein 338 - 339m 

http://www.rns-pdf.londonstockexchange.com/rns/2199A_4-2008-7-30.pdf

Further along strike to the north in the Amun Deeps porphyry, hole D1345 on 10350N intersected similar zones of quartz veining and strong sulphide mineralisation in a 160m downhole thickness of porphyry (94m @ 3.98g/t Au from 343m; Table 5). Visible gold was logged in the quartz vein associated with the Hapi Zone at 345.5m (1m @ 70.6g/t Au). A high grade zone near the sheared, basal west dipping thrust contact (4m @ 9.62g/t Au from 493m) was returned, consistent with holes to the north and south described above that have intersected that shear zone.

Pharaoh Zone (11200N - 12100N)  

Drilling recommenced during the quarter in the Pharaoh Zone, targeting infill and along strike extension of the up dip, high grade Hapi Zone mineralisation intersected further south in the Ra Zone and on 11200N (D1240), and north on 11275N (RCD574).

Drilling of hole D1344 on 11225N intersected the targeted zone from 466m in strongly silica-sericite-kaolin altered haematitic porphyry, with patchy, moderate to strong sulphide development and brecciation. Visible gold was noted at 478m downhole in the 8m thick strongly silicified and veined porphyry near the footwall contact; the intersection returned 46m @ 6.39g/t Au, including 3m @ 41.68g/t Au from 477m in the VG location (Table 5). Hole D1364, collared 50m north also intersected the same high grade zone and returned 81m @ 4.07g/t Au from 473m 70m down dip.

D1355 drilled 25m to the north and down dip of D1344 on 11250N intersected several strong mineralised zones downhole, including a strong kaolin-carbonate-silica alteration in a thick zone before the footwall contact (77m @ 4.90g/t Au from 575m; Table 5), successfully defining the target area.

Several other holes (D1368, D1369, D1370) were completed late in the quarter that show strong mineralisation in the targeted areas, assay results are awaited. Drilling will continue during the coming quarters, targeting these mineralisation zones heading north along the drill tracks available in the Pharaoh Zone.

Drilling in the far north of the hill on 12100N confirmed the presence of the west dipping Cleopatra shear zone and quartz vein mineralisation intersected previously in hole RCD620, with holes D1343 and D1353 intersecting quartz veining, sericitic and sulphide alteration in silicified and feldspar altered porphyry (Table 5). Drilling also continues in this area where newly created tracks provide access for the smaller PGM rigs to test this and other zones at the footwall contact of the porphyry body.

REGIONAL EXPLORATION

Regional exploration work continued during the quarter, with mapping and sampling initially following the broad NNE - SSW - SSE curvilinear corridor along the major Najd Fault regional structure, from Sukari North, Sukari, Sami South, down to Kurdeman (Figure 6). The aim is to produce a comprehensive geological, structural and alteration map for the full exploitation license area, generating targets for more detailed work. Interpretation of satellite imagery will continue to be used to focus efforts in areas of more favourable geology.

Results for 173 out of the 669 samples collected so far have been returned, with several gold anomalous results (Table 2), generally related to quartz veins, shearing and zones of stronger alteration, typically listvenitic silica-ankerite, in felsic rocks. Geochemically, there is a moderate to strong positive correlation between gold and arsenic and silver, with a link to weak copper. Follow up work is continuing.

Table 2 - Anomalous Geochemistry - Regional 400m x 100m grid grab Samples (>0.05ppm Au)

SAMPLE	UTM_N	UTM_E	Rock Type	Au_Ar1_ppm
281791	2762000	673960	Mafic Volcanic	0.837
293694	2762400	675514	Felsic volcanic	0.195
293695	2762396	675600	Felsic volcanic	0.065
299666	2763047	675617	Listvenite - silica-carb altered	0.101
299667	2763042	675586	Listvenite - silica-carb altered	0.064
299673	2763355	675517	VQ	0.547
299686	2763230	674400	Listvenite - silica-carb altered	3.970
299688	2763222	674302	Listvenite - silica-carb altered	0.063
301451	2763226	673808	VQ	0.087
301459	2763600	673846	Gabbro-diorite	0.238
301475	2763758	674917	Felsic volcanic	0.059
301478	2763740	674176	VQ	2.340
301490	2763622	675485	Felsic volcanic	0.147
301491	2764019	676685	VQ	0.089

Sukari North B

Mapping and regional sample traversing discovered a previously unknown group of ancient diggings on some NE trending, moderate SE and S dipping milky quartz veins in altered and sheared felsic to intermediate granodiorite composition rocks (Figure 7). The workings are 3.5km NE of Sukari Hill, the geological setting is similar to Sukari North Prospect, about 1km to the north.

Assay results were encouraging, with several +0.1ppm Au values returned from the quartz veining, adjacent shear zones and altered rocks (Table 3). Gold anomalism is generally related to north east trending shear zones and carbonate-silica - trace sericite hydrothermal alteration. Follow up work is ongoing.

Figure 6 - Sukari Exploitation Concession and Regional Sampling 

                                            http://www.rns-pdf.londonstockexchange.com/rns/2199A_5-2008-7-30.pdf  Table 3 - Strongly Anomalous Rock Chip Samples, Sukari North B Prospect (>0.5ppm Au)

SAMPLE	UTM_N	UTM_E	Rocktype	Au_Ar1_ppm	Comments
303606	2763992	676726	VQ	0.575	Main Lode Workings
303610	2764005	676670	Granodiorite	0.563
303613	2763934	676676	Granodiorite	2.900
303615	2763873	676576	Granodiorite	4.160	West Lode Grab Sample
303616	2763878	676582	VQ	0.960	West Lode Grab Sample
303617	2763875	676568	Granodiorite	0.856	West Lode Grab Sample
303618	2763882	676559	Granodiorite	2.380	West Lode Grab Sample
303656	2764004	676666	Granodiorite	1.300
303662	2763994	676678	Granodiorite	1.060
303745	2763388	676739	Granodiorite	0.682
304502	2763855	676637	Shear Zone	0.986
304506	2763847	676715	VQ	1.720
304509	2764371	676777	VQ	0.642
304951	2765507	677736	Felsic volcanic	0.622
304952	2765215	677761	Gabbro-diorite	1.040
305136	2763912	676735	Granodiorite	0.705
305138	2763911	676739	Granodiorite	0.827
305142	2763909	676745	Granodiorite	0.647
305178	2763887	676806	Granodiorite	0.811
306101	2763679	676803	Listvenite - silica-carb altered	2.640	Shear Zone south of Main Lode workings
306115	2763894	676568	Granodiorite	0.579
306122	2763882	676571	Granodiorite	3.880	South Dipping West Lode quartz vein - shear zone structure
306123	2763881	676572	Granodiorite	2.700
306124	2763875	676574	Granodiorite	2.820
306125	2763873	676574	Granodiorite	14.600
306126	2763871	676574	Granodiorite	2.640
306143	2763875	676549	Granodiorite	2.450

Progress Picture: Blasting Crew on the Sukari Hill 

http://www.rns-pdf.londonstockexchange.com/rns/2199A_8-2008-7-30.pdf

Figure 7 - Sukari North B Prospect - Surface Sample Assays and Geology 

http://www.rns-pdf.londonstockexchange.com/rns/2199A_6-2008-7-30.pdf

GRADE CONTROL

Grade control drilling on available tracks and benches continued during the quarter, as the PGM owned Atlas Copco L8 rigs were commissioned with their all Egyptian crews after a period of training and testing. A total of 13,816m of drilling has been completed at Sukari (Table 4) over the last 12 months, the majority of it by the contractor Capital Drilling. The PGM rig drilled 1,979m for the quarter.

Table 4 - Monthly Grade Control Statistics

	METRES
MONTH	PGM RC	CD RC	TOTAL
Jul-07	0.00	1,574.00	1,574.00
Aug-07	0.00	1,973.00	1,973.00
Sep-07	0.00	0.00	0.00
Oct-07	0.00	0	0.00
Nov-07	0.00	1,109	1,109.00
Dec-07	0.00	3,985	3,985.00
Jan-08	0.00	3196	3,196.00
May-08	698.00	0	698.00
Jun-08	1,281.00	0	1,281.00
TOTALS	1,979.00	11,837.00	13,816.00

MINING

Caterpillar, through their Egyptian authorised dealer Mantrac, was selected through a competitive tender as the supplier of haulage trucks, articulated dump trucks, excavators, graders and dozers for the project. The initial mining fleet sufficient to commence mining pre-strip work will largely comprise:-

CAT 785C Rear Dump Trucks (5)

CAT 785C Water Truck (1)

O&K RH120E Excavator (1)

CAT D10T Dozers (2)

CAT 14H Grader (1)

CAT 16M Grader (1)

CAT 365 BLME Excavator (1)

CAT 988G Wheel Dozers (2)

H180D Rock Breaker (1)

Atlas Copco has been selected to supply grade control and blast hole drilling equipment. Initial fleet selection comprises:

ROC F9 Pioneer Drill (1)

L8 MKII Production Drill (1)

L8 MKII RC Rig (1)

The majority of the initial fleet is on site and already in use for plant site and TSF civil work.  Plant site civil works were completed during the first calendar quarter of 2008. Bulk earth works for the TSF were completed during the quarter with a total of 10,962 truck loads for 712,000BCM being shifted for the embankment. Over the three month exercise there were no safety incidents and all operators of equipment were Egyptian nationals.

Mining pre-strip activity and blasting is scheduled to commence in quarter four of 2008 with completion of magazines during the quarter and good progress being made on the remaining permitting of blasting. Further deliveries of mining fleet are scheduled for the third and fourth quarter of 2008 with no foreseeable problems in delivery times.

UNDERGROUND MINE PLANNING

During the previous quarter, the company successfully filled the position of Underground Mine Manager. Work has now begun on several fronts including the following reviews:-

• Geology of the high grade Amun Deeps;

• Geotechnical;

• Mining method;

• Contract mining v Owner Operator;

• Capital expenditure estimates; and

• Infrastructure preparation.

AMC Consultants Pty Ltd in Perth have been engaged to formally conduct an underground mining study, with completion of the report targeted for quarter three of 2008. It is the intention to target an initial underground mining rate of 500,000 tonnes per annum bringing higher grade ore feed into production earlier than otherwise would have been the schedule through surface mining.

Progress Pictures: Tailings Storage Facility and Construction Laydown and Refurbishment Area 

 http://www.rns-pdf.londonstockexchange.com/rns/2199A_13-2008-7-30.pdf 

SUKARI GOLD PROJECT (CONSTRUCTION UPDATE)

The project schedule has been updated to June 30, 2008, covering all phases of the project. The current schedule shows overall completion at 58%.

Anticipated key completion dates are as follows:

Project Go-Ahead Decision                       Feb 2007 (Completed)

Kori Kollo Plant Arrives Egypt                   Q4 2007     (Completed)

28MW Power Station Arrives                    Q4 2007    (Completed)

Project Finance                                         Q4 2007    (Completed)

Plant site Civil Works                                 Q2 2008    (Completed)

Seawater Pipeline                                     Q3 2008    (Commenced)

Tailings Storage Facility                            Q3 2008    (Commenced)

Mining Pre-strip                                        Q4 2008    

Commissioning and Production                 Q2 2009

Progress pictures can be viewed on the Company's website - www.centamin.com. 

Kori Kollo Process Plant /28MW Isparta Power Station

On 24 October 2007, the Company announced that both the Kori Kollo processing plant and the Isparta power plant had arrived safely at the Egyptian seaport of Alexandria and their cargoes had been discharged. The dismantling of the Kori Kollo processing facility in Bolivia and the Isparta 28MW power plant in Turkey were completed in September 2007, and both sites were closed and signed off. All staff from Bolivia and Turkey have now relocated to Egypt to continue with the reassembly of the plants at Sukari. The Isparta power plant consisted of 24 pieces of break bulk and 56 containers holding more than 900 individual packages. The Kori Kollo processing plant comprised 270 pieces of break bulk and 55 containers. 

Trucking of freight to the Sukari site was completed during quarter four of 2007. 

The refurbishment programme for the Kori Kollo processing plant is underway with sand blasting and undercoating of equipment progressing under the supervision of the Plant Maintenance Manager. Temporary workshops have been erected to accommodate the refurbishment programme which is progressing well with component suppliers having visited site and surveyed the equipment and available manuals and procurement of replacement parts is also progressing well.

Progress Picture: Tank Construction

http://www.rns-pdf.londonstockexchange.com/rns/2199A_11-2008-7-30.pdf

Project Engineering and Design

MetPlant Engineering Services Pty Ltd, an Australian-based company have continued with the engineering and design work for the Process Plant. The shortage and turnover of available engineering personnel in Perth has seen engineering and design work fall behind schedule in some areas. The Company has addressed this through sub contracting out some of the smaller packages to other firms to ensure that the schedule can be maintained. As such, the piping package was awarded during the quarter to SENET of South Africa.

Site Works

Activities completed and commenced to the end of the quarter are as follows:-

• Upgrading of the 10km access road to the Sukari site (completed);

• Establishment of container and mine lay down and security hut complex facilities (completed);

• Temporary maintenance, warehousing and fuelling facilities (completed);

• Bulk earthworks for the plant site (completed);

• Excavation of crusher and power plant foundations (completed);

• Crushed ore stockpile reclaim tunnel (completed); and

• Crusher, CIL tanks, power plant etc foundation formwork (commenced).

A significant amount of rocky outcrops overlaying the plant site area have been removed through the utilisation of the new mining equipment which has facilitated in the training of owner personnel.

Concreting of foundations for crusher, CIL tanks, power plant, stockpile reclaim tunnel etc, commenced late in the quarter following arrival and commissioning of the concrete batch plant. Due to the late arrival of the batch plant, insufficient concrete was poured during the quarter which has led to the process plant commissioning date slipping to quarter two of 2009.

Tailings Storage Facility ('TSF')

Knight Piesold Pty Ltd has been appointed to carry out the design and construction supervision of the TSF. Design work is complete and construction of the dam commenced in quarter one of 2008 with the bulk earthworks part of the programme involving excavation of the embankment and deliveries of gypsum sand to the site which will be the bedding material for the liner. Bulk earthworks for the TSF have now been completed with overall completion scheduled for quarter four of 2008. 

Progress Picture: Aerial Photo of Sukari Plant Site 

http://www.rns-pdf.londonstockexchange.com/rns/2199A_7-2008-7-30.pdf

Seawater Supply System

Construction of the seawater pipeline commenced during the previous quarter with rock breaking and road works of the 25km pipeline schedule for and completed in quarter two. Installation and welding of the HDPE pipe is approaching completion and pressure testing has commenced with the overall programme scheduled for completion in quarter three of 2008.  

Work on the seawater wells is due to commence in quarter three of 2008.

The Seawater Supply System will draw in and transport raw seawater, via a staged pumped pipeline, to the Sukari site where it will be processed through a desalination plant for end use as process plant water, mine site dust suppression water and, after secondary processing and treatment for construction camp drinking water.

Progress Picture: Work on the Pipeline Corridor 

http://www.rns-pdf.londonstockexchange.com/rns/2199A_12-2008-7-30.pdf

PROJECT FINANCE

On November 23, 2007, the Company announced that it had sold on a private basis an aggregate of 112,000,000 special warrants at a price of C$1.20 per special warrant for aggregate gross proceeds of C$134,400,000, which includes the exercise in full by the Underwriters of the Underwriters' option.

The net proceeds of this equity financing are to be applied to fund the continued development of the Sukari Gold Project, underground development, other exploration and general corporate purposes.

The Sukari Gold Project is 100% fully funded through to gold production currently forecast to be the second quarter of 2009. As a result the Company no longer needs to pursue debt financing, has no debt, no hedging and at June 30, had a cash balance of US$182M.

CORPORATE

Two Non-Executive Directors have been appointed to the board in the last few months, both bringing individual skills that will benefit the company as it moves from the exploration to the production phase.  

Trevor Schultz joined the board in May 2008. Trevor has more than 40 years experience at the executive management and board level with leading international mining companies including BHP, RTZ/CRA, Pegasus Gold and Ashanti Goldfields. His roles included development of several new mining operations in Africa, South America and the USA, negotiations with various governments and their agencies as well as project finance and capital raisings. Most recently Trevor was the President and CEO of Guinor Gold Corporation which was responsible for the relocation, construction and commissioning of the 7mtpa gold plant at the LEFA gold mine in Guinea.

Earlier this month, Professor Graeme Robert Tangye Bowker (Bob) also joined the board. Professor Bowker recently retired from the position of Australian Ambassador to Egypt, Libya, Sudan, Syria and Tunisia a position he held for three years from 2005. Professor Bowker had a 37 year career with the Australian Foreign Service specialising in Middle Eastern issues and postings.

SUKARI GOLD PROJECT (BACKGROUND)

Centamin is a mineral exploration and development company that has been actively exploring in Egypt since 1995. The principal asset of Centamin is its interest in the Sukari Gold Project, located in the Eastern Desert of Egypt. The Sukari Gold Project is at an advanced stage of development, with construction having commenced in quarter two of 2007 and first gold production expected during the second quarter of 2009. 

A definitive feasibility study ('DFS') for the development to commercial production of the Sukari Gold Project was completed in February 2007. 

A summary of the findings of the DFS were:-

• the DFS concluded that a 4mpta plant producing on average 200,000 ounces per annum, over 15 years of mining, is economically robust; and 

• total Capital Construction costs are estimated at US$216m with average cash operating costs of US$290/oz (inclusive of 3% royalty) over the 15 year mining period. As at June 30, the Company is of the opinion that due to increased commodities prices and currency movements since finalisation of the DFS that the capital estimate is at risk by 10-15%.  Average cash operating costs have also been revalidated as at June 30, 2008 due the higher cost of consumables, and are forecast to be US$365/oz. 

The Sukari Gold Project will be the first large-scale modern gold mine to be developed in Egypt. Centamin's operating experience in Egypt gives it a significant first-mover advantage in acquiring and developing other gold projects in the prospective Arabian-Nubian Shield.

The Sukari Gold Project is hosted by a large, sheeted vein-type and brittle-ductile shear zone hosted gold deposit developed in a granitoid intrusive complex. Gold mineralization is hosted exclusively by a granitoid body of granodiorite - tonalite composition referred to as the Sukari Porphyry. The Company has entered into a Concession Agreement with the Egyptian Government that provides for exploration and exploitation rights at the Sukari Gold Project and whereby the Operating Company, owned 50% by the Company's wholly owned subsidiary, Pharaoh Gold Mines NL and 50% by Egyptian Mineral Resource Authority ('EMRA'), has been established. Centamin is entitled to recover all of its exploration, operating and capital costs from operating surpluses of the operating company.

The Sukari Mining Licence covers an area of 160 km2 and is for a period of 30 years, with an option for a further 30 years.

The Sukari Gold Project has been scheduled for open pit mining over an initial 15-year period. During that time 78 Mt ore @ 1.5 g/t Au is expected to be mined, producing 3.7 Moz gold. A further 374 Mt of waste material is also expected to be mined resulting in a waste to ore strip ratio of 4.8:1.

Ore and waste will be mined using conventional open pit mining methods. The operation is planned to utilize selective mining techniques to separate ore and waste. Provision has been made for drilling and blasting all primary and oxide materials. Ore will be hauled to the run of mine pad next to the Processing Plant and either direct tipped to the crusher or stockpiled for future reclaim at the 4 Mtpa Process Plant throughput rate.

Mining will be progressed at an increased rate compared to processing; approximately 5 Mt of ore is expected to be mined and 4 Mt of ore will be processed annually. Operating at an increased mining rate allows the cut off grade for feed to the Plant (referred to as 'cutover' grade) to be increased in the early years of the schedule. This in turn increases the metal output and project revenue in these early years, thus increasing the discounted operating surplus cashflow. According to current schedules, the low-grade stockpile produced as a result of applying a cutover grade, will be processed after mining has ceased, extending the current operating life of the project for a further six years. As a result, the average milled grade during the mining period is forecast to be 1.87 g/t Au, compared to 0.66 g/t Au for the low-grade stockpile. 

Centamin will own and operate its mining fleet. The production fleet will be based on 380 t class excavators and 150 t class rigid body trucks. At full production, three production fleets, each comprising a single excavator and sharing a maximum of 21 trucks, will be required. The capital cost of the initial mining fleet has been estimated at US$49.3 million.

The proposed process route entails:-

• crushing;

• stockpiling crushed ore;

• grinding;

• flotation of a (bulk sulphide) concentrate containing the precious metals;

• thickening of the concentrate;

• fine milling of the concentrate;

• leaching the precious metals from the concentrate in a dilute cyanide solution;

• adsorbing the precious metals onto activated carbon;

• stripping the precious metals from the carbon;

• recovering the precious metals as gold doré; and

• placing the concentrate tailing in the tailings storage facility.

Tailings from the treatment of weathered oxide ore early in the mining schedule contain too much gold to discard. Hence, the bulk flotation tail is further treated by:

• thickening;

• leaching the precious metals into a dilute cyanide solution;

• adsorbing the precious metals onto activated carbon;

• stripping the precious metals from the carbon;

• recovering the precious metals as gold doré; and

• placing these tailings in the tailings storage facility.

Process water will be drawn from a bore field located adjacent to the Red Sea. The seawater will be pumped approximately 25 km to the mine site to satisfy all Process Plant and mining requirements. Most of the seawater will be pumped into a raw water pond located near the Processing Plant, whilst around 500m³/day will be pumped to a Water Treatment Plant for potable and fresh water supplies.

Power will be generated on site by a 28 MW power station, operated on heavy fuel oil. A temporary construction camp was constructed to cater for approximately 700 occupants. The construction camp currently houses approximately 400 occupants, with another 150 occupants being housed in the old exploration camp. 

On behalf of Centamin Egypt Limited

Josef El-Raghy

Managing Director/CEO

July 30, 2008

For more information please contact:

Centamin Egypt Limited + 61 (8) 9316 2640 Josef El-Raghy

Pelham Public Relations Tel : + 44 (0) 207 743 6376, Mobile : + 44 (0) 7894 462 114 Candice Sgroi

Ambrian Partners Limited + 44 (0) 207 776 6400 Richard Brown

Information in this report which relates to exploration, geology, sampling and drilling is based on information compiled by geologist Mr R Osman who is a full time employee of the Company, and is a member of the Australasian Institute of Mining and Metallurgy with more than five years experience in the fields of activity being reported on, and is a 'Competent Person' for this purpose and is a 'Qualified Person' as defined in 'National Instrument 43-101 of the Canadian Securities Administrators'. His written consent has been received by the Company for this information to be included in this report in the form and context which it appears. The assay samples were analysed by Ultra Trace Pty Ltd, Canning Vale, Western Australia.

The information in this report that relates to mineral resources is based on work completed by Mr Nicolas Johnson, who is a Member of the Australian Institute of Geoscientists. Mr Johnson is a full time employee of Hellman and Schofield Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a 'Competent Person' as defined in the 2004 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' and is a 'Qualified Person' as defined in 'National Instrument 43-101 of the Canadian Securities Administrators'. Mr Johnson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Refer to the Technical Report which was filed in March 2007 for further discussion of the extent to which the estimate of mineral resources/reserves may be materially affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issue.

  Table 5 - Significant Intersections June 2008 Quarter

HOLE	NORTH	EAST	DIP	AZI	EOH	FROM	TO	INTERVAL	AUAR1
D1331	10750	10925	-76	270	498.2	463	464	1	3.41
						4687	469	1	8.65
D1333	10175	10662	-77	270	761.4	298	305	7	1.50
					incl.	303	304	1	6.09
						326	372	46	1.65
					incl.	332	336	4	5.36
						381	384	3	1.20
						450	461	11	7.19
					incl.	460	461	1	38.40
						478	492	14	32.59
					incl.	478	479	1	128.00
					incl.	489	490	1	117.00
D1338	10275	10800	-77	270	602.6	392	400	8	2.82
						413	447	34	2.2
					incl.	414	417	3	6.88
						471	474	3	1.16
						480	490	10	1.24
						495	518	23	7.76
D1339	10175	10700	-80	270	659.3	362	399	37	3.29
					incl.	374	377	3	6.94
					incl.	387	394	7	7.27
D1341	10800	10930	-78	270	872.2	282	290	8	1.69
						459	462	3	1.45
						442	444	2	1.47
D1343	12100	10490	-40	90	323.4	205	213	8	1.02
D1344	11225	10805	-60	270	595.6	35	36	1	7.94
						61	64	3	1.11
						123	127	4	1.08
						132	140	8	1.26
						203	251	48	1.11
						339	341	2	1.40
						435	440	5	1.10
						466	512	46	6.39
					incl.	473	474	1	17.00
					incl.	477	480	3	41.68
					incl.	485	487	2	16.00
D1345	10350	10730	-80	270	626.1	343	437	94	3.98
					incl.	343	346	3	27.84
					incl.	362	363	1	5.18
					incl.	371	375	4	11.56
					incl.	388	389	1	38.00
					incl.	408	409	1	12.50
					incl.	429	436	7	10.52
						445	499	54	1.64
					incl.	493	497	4	9.62
D1346	10425N	10800	-87	270	625	421	423	2	3.65
D1347	10375	10795	-80	270	643	407	431	24	2.74
					incl.	422	427	5	5.69
						487	495	7	8.42
					incl.	492	493	1	20.80
D1348	11225	10805	-76	270	727.5	19	22	3	2.17
						69	71	2	2.97
						107	125	16	2.45
					incl.	123	125	2	9.57
						130	138	8	1.92
					incl.	131	132	1	5.85
					incl.	136	137	1	6.57
						195	201	6	1.06
						235	260	25	1.43
					incl.	257	258	1	11.40
						283	290	7	1.20
						335	342	7	1.43
						359	387	28	1.25
					incl.	379	380	1	5.74
						409	433	24	2.95
					incl.	409	410	1	55.80
						537	546	9	1.37
						640	648	8	1.17
						653	660.3	7.3	1.08
D1349	10075	10695	-87	270	549.3	293	295	2	1.44
						332	334	2	1.36
						429	440	11	2.82
					incl.	432	433	1	20.50
D1350	10575	10730	-84	270	626.1	387	411	24	1.30
					incl.	394	395	1	5.28
					incl.	410	411	1	6.69
						493	495	2	3.41
						509	512	3	3.18
						581	585	4	5.38
					incl.	583	584	1	12.50
						595	604	9	0.99
D1351	10250	10678	-85	270	638.7	253	255	2	15.95
						277	288	11	3.91
					incl.	278	280	2	14.40
					incl.	287	288	1	9.98
						336.6	370	34.4	6.00
					incl.	338	339.6	1.6	85.88
						376	402	26	1.51
					incl.	379	380	1	6.26
D1353	12100	10800	-63	270	273.42	56	69	13	1.42
D1355	11250	11870	-55	270	734	3	7	4	1.15
						22	24	2	1.04
						306	309	3	1.80
						314	326	12	3.91
					incl.	319	320	1	36.10
						528	530	2	2.77
						562	566	4	1.00
						575	652	77	4.90
					incl.	582	583	1	288
					incl.	612	613	1	12.20
						676	696	20	1.45
D1357	10525	10880	-85	270	679.8	479	481	2	9.37
					incl.	480	481	1	17.60
D1359	11275	10745	-80	270	268.5	62	67	5	1.62
						224	226	4	1.09
						234	256	22	2.54
					incl.	235	237	2	11.80
D1361	11250	10575	-70	270	488	38	54	16	1.33
						89	92	3	2.13
D1364	11275	10745	-80	270	656.3	110	118	8	1.68
					incl.	110	111	1	8.20
						159	162	3	3.81
					incl.	159	160	1	9.49
						173	177	4	1.93
						321	330	9	0.99
						473	553	81	4.07
					incl.	491	492	1	6.38
					incl.	495	497	2	9.85
						564	571	7	3.68
					Incl.	567	568	1	11.7
						579
D1366	10350	10640	-77	270	745.8	238	296	58	2.53
					incl.	259	261	2	23.34
					incl.	264	265	1	27.40
					incl.	270	271	1	6.86
					incl.	294	296	2	6.72
						511	521	10	45.94
					incl.	511	513	2	227.70
						591	630	39	1.76
					incl.	593	600	7	5.43

Notes: (1) Intervals shown in the table are down hole intercepts, drilled at high angles relative to the internal mineralized structures and the Sukari Porphyry; true widths do not apply or are not used in drilling the stockwork style mineralization at Sukari

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin : Appendix 8. Amended 1/7/98, 30/9/2001.

Name of Entity

Centamin Egypt Limited

ABN                                  Quarter ended ('current quarter')

86 007 700 352

June 30, 2008

Consolidated statement of cash flows

Centamin Egypt Limited

Pharaoh Gold Mines NL (100%)

Viking Resources Ltd (100%)

North African Resources (100%)

Centamin Limited (100%)

Cash flows related to operating activities	Current Quarter $US'000	Year to date (12 months) $US'000
1.1 Receipts from product sales and related debtors	-	-
1.2 Payments for (a) exploration and evaluation	(3,181)	(11,405)
(b) development	(19,077)	(83,005)
(c) production	-	-
(d) administration	(710)	(3,436)
1.3 Dividends received	-	-
1.4 Interest and other items of a similar nature received	888	6,789
1.5 Interest and other costs of finance paid	-	-
1.6 Income taxes paid	-	-
1.7 Other (provide details if material)	-	-
Net Operating Cash Flows	(22,080)	(91,058)
Cash flows related to investing activities
1.8 Payment for purchases of (a) prospects	-	-
(b) equity investments	-	-
(c) other fixed assets	-	-
1.9 Proceeds from sale of (a) prospects	-	-
(b) equity investments	-	-
(c) other fixed assets	-	-
1.10 Loans to other entities	-	-
1.11 Loans repaid by other entities	-	-
1.12 Other (provide details if material)	-	-
Net investing cash flows	-	-
1.13 Total operating and investing cash flows (carried forward)	(22,080)	(91,058)

1.13 Total operating and investment cash flows (brought forward)	(22,080)	(91,058)
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc.	653	134,523
1.15 Proceeds from sale of forfeited shares	-	-
1.16 Proceeds from borrowings	-	-
1.17 Repayment of borrowings	-	-
1.18 Dividends paid	-	-
1.19 Other (bank and financing charges)	123	(1,490)
Net financing cash flows	776	133,032
Net increase (decrease) in cash held	(21,304)	41,975
1.20 Cash at beginning of quarter/year to date	200,259	136,501
1.21 Exchange rate adjustments to item 1.20	3,374	3,853
1.22 Cash at end of quarter	182,329	182,329

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities	Current quarter $US'000
1.23 Aggregate amount of payments to the parties included in item 1.2	276
1.24 Aggregate amount of loans to the parties included in item 1.10	-

1.25 Explanation necessary for an understanding of the transactions

Salaries, superannuation contributions, consulting and Directors fees paid to Directors during the three months ended June 30, 2008 amounted to A$257,175 (June 30, 2007: A$253,193). Mr S El-Raghy and Mr J El-Raghy are Directors and shareholders of El-Raghy Kriewaldt Pty Ltd ('ELK'), which provides office premises to the Company in Australia. All dealings with ELK are in the ordinary course of business and on normal terms and conditions. Rent paid to ELK during the three months ended June 30, 2008 amounted to A$15,601 (June 30, 2007: A$13,923). Mr S El-Raghy provides office premises to the Company in Alexandria, Egypt. All dealings are in the ordinary course of business and on normal terms and conditions. Rent paid during the three months ended June 30, 2008 amounted to GBP 1,950 (June 30, 2007: GBP 1,950).

  Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

-

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

-

Financing facilities available

Add notes as necessary fro an understanding of the position.

	Amount available $US'000	Amount used $US'000
3.1 Loan facilities	-	-
3.2 Credit standby arrangements	-	-

Estimated cash outflows for next quarter

	$US'000
4.1 Exploration and evaluation	3,497
4.2 Development	54,663
Total	58,160

Reconciliation of Cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $US'000	Previous quarter $US'000
5.1 Cash on hand and at bank	5,212	2,100
5.2 Deposits at call	-	-
5.3 Bank overdraft	-	-
5.4 Term deposits	177,117	198,159
Total: cash at end of quarter (item 1.22)	182,329	200,259

  Changes in interests in mining tenements

	Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
6.1 Interest in mining    tenements relinquished,    reduced or lapsed
6.2 Interests in mining    tenements acquired or    increased

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note 3)	Amount paid up per security (see note 3)
7.1  Preference +securities    (description)
7.2 Changes during quarter   (a) increases through issues   (b) decreases through returns   of capital, buy-backs,    redemptions
7.3  +Ordinary securities	877,419,163	877,419,163
7.4 Changes during quarter   (a) increases through issues/     options exercise   (b) decreases through returns   of capital, buy-backs	615,000	615,000	(see 7.9 below)	(see 7.9 below)
7.5  +Convertible debt securities    (description)
7.6 Changes during quarter   (a) increases through issues   (b) decreases through   securities matured,    converted
7.7  Options    (description and conversion    factor)	Employee Option Plan 2002   1,500,000   250,000 Employee Option Plan 2006 1,950,000 2,165,000 500,000 250,000 3,500,000 Other Unquoted Options 1,670,000 Broker Warrants 3,393,678 613,582 5,600,000	Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil	Exercise Price A$0.4355  A$0.6566  A$0.7106  A$1.0500 A$1.1636 A$1.4034 A$1.7022 A$0.3500 C$0.8600 C$0.8600 C$1.2000	Expiry Date 08 Dec 08 30 Aug 09 31 Jan 10 24 May 10 25 Jun 10 15 Oct 10 16 Apr 11 31 Oct 10 11 Apr 09 20 Apr 09 23 Nov 09
7.8 Issued during quarter	Employee Option Plan 2006 3,500,000	Nil	A$1.7022	16 Apr 11
7.9 Exercised during quarter	Employee Option Plan 2006 115,000 500,000	115,000 500,000	A$0.7106  A$1.1636	31 Jan 10 25 Jun 10
7.10 Expired/lapsed during quarter	Employee Option Plan 2006 20,000 500,000	Nil Nil	Exercise Price A$0.7106 A$1.1636	Expiry Date 31 Jan 10 25 Jun 10
7.11 Debentures    (totals only)
7.12 Unsecured notes(totals only)

Compliance statement

1.    This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

2.    This statement does give a true and fair view of the matters disclosed.

Sign here:                            Date: 30 July 2008

Print name:        Heidi Brown

            Company Secretary

Notes

1.    The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2.    The 'Nature of interest' (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

3.    Issued and quoted securities: The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.

4.    The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

5.    Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

 

END

 

 

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